Japan's Mitsubishi Motors Corp (MMC) has agreed to pay DaimlerChrysler about 70 billion yen ($680.9 million) in compensation for losses suffered after a scandal over defective vehicles, a Japanese newspaper said on Sunday. MMC will pay DaimlerChrysler 20 billion yen in cash and the remainder in shares in sister company Mitsubishi Fuso Truck and Bus Corp, the Nihon Keizai Shimbun said, without citing sources.
DaimlerChrysler had demanded compensation for losses on its holdings in Mitsubishi Fuso after sales nosedived when MMC admitted last year it had been covering up vehicle defects.
DaimlerChrysler paid 52 billion yen in January last year to raise its stake in Fuso to 65 percent from the previous 43 percent, just before the cover-up came to light.
MMC is to pass to DaimlerChrysler its own 20 percent holdings in Fuso, which it spun off in January 2003, the paper said.